We maintain our preference for the VAMOBZ 9.200% 2031 notes as the primary expression of a constructive view on the credit. Since January 6, SIMHBZ 2031 has compressed by roughly 148 bps to 498 bps, while VAMOBZ 2031 has drifted modestly wider to 649 bps, creating a 151 bps spread gap versus the essentially flat relationship that existed at initiation and a 160 bps yield gap in VAMOBZ’s favor. VAMOBZ also retains a shorter duration at 3.5 years versus 4.0 years for SIMHBZ. In our view, this combination of higher carry, lower duration, and operating-company positioning continues to make VAMOBZ the most attractive way to express the improving Simpar credit story for investors focused on defensive carry and downside protection. MOVIBZ 2029 remains the middle ground for investors focused on shorter duration and liquidity.

The 4Q25 results validate the directional thesis we outlined at initiation. Operating performance improved meaningfully, leverage continued to decline, and capital intensity reached its lowest level in five years, supporting the view that the group has entered a lower-investment and potentially more cash-generative phase. That said, underlying free cash flow remains dependent on working capital support and asset monetization rather than recurring operations alone, while Brazil’s elevated interest rate environment continues to constrain deleveraging by absorbing a large share of EBITDA and keeping EBITDA interest coverage thin. Liquidity is adequate, capital markets access has remained open at improving cost levels, and management has framed 2026 as a value-extraction and efficiency phase, with cash generation expected to become more resilient as investment needs normalize.

Within the group, cash conversion trends also reinforce our preference for Vamos. The comparison is directional rather than fully comparable, but it remains informative. In 4Q25, Vamos generated EBITDA equal to 3.8x net capex, versus only 0.6x at Movida, highlighting that Vamos is already operating in a much clearer lower-investment and higher-cash-conversion phase, while Movida remains materially more capital intensive. Simpar sits in between at the consolidated level, but the ratio is closer to 1.1x when using adjusted EBITDA rather than reported EBITDA, which benefited from the Ciclus Rio divestment. We think this reinforces the view that the strongest internal cash-generation profile in the complex currently sits at Vamos.

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We downgrade Braskem to Neutral from Overweight. The recent report that the company is considering seeking local court protection against creditors, even if no final decision has been made and plans may still change, materially alters the risk profile and, in our view, is difficult to reconcile with an Overweight stance. This comes on top of an already very weak 4Q25 backdrop, with results remaining below expectations, liquidity deteriorating sharply, leverage increasing further, and management framing 2026 around liquidity preservation and capital structure reorganization rather than recovery. Braskem’s own disclosure that its results indicate a material uncertainty that may cast significant doubt on the company’s ability to continue as a going concern further reinforces this shift in the credit narrative. In that context, we no longer think it is appropriate to recommend adding risk until there is greater clarity on whether Braskem can secure a credible out of court solution or will need to pursue a more formal restructuring path.

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We maintain our Overweight recommendation on JBS, as 4Q25 results continue to support a constructive credit view despite some sequential pressure on profitability. The main strength of the story remains the scale and diversification of JBS’s global protein platform, which continues to offset weaker conditions in businesses facing more challenging livestock and commodity dynamics. This was again evident in 4Q25, as stronger performances in Brazil, Australia, and poultry helped balance weaker results in North America Beef and pork. The company also ended the quarter with strong liquidity, solid free cash flow, and net leverage of 2.68x, comfortably within management’s 2x to 3x target and supportive of investment-grade metrics. While we continue to view North America Beef as the main operating overhang into 2026, we think JBS’s diversified earnings base and healthy cash generation keep the overall credit story well anchored.

Within the curve, we continue to see the best value concentrated in the long end. We favor the JBS 7.250% 2053s from a carry-to-duration standpoint, as they offer a 6.5% YTW at 158 bps OAS, a price of $109.3, and 12.2 years of duration. Relative to Tyson, that implies 53 bps of incremental spread versus TSN’s 5.100% 2048s at 105 bps OAS and 56 bps versus TSN’s 4.550% 2047s at 102 bps, with broadly comparable duration. The 2053s also trade 53 bps wide to the U.S. Corp Long benchmark at 105 bps OAS, although we view that comparison more as a technical reference given the materially higher quality of that index. While that pickup has narrowed modestly from the roughly 60 bps differential implied by 3-month average spreads, we think the long end has retained more of its relative value than the belly, where compression versus Tyson and broader BBB benchmarks has been more pronounced. We also like the JBS 4.375% 2052s, which yield 6.3% at a price of $75.4 and 134 bps OAS. While the 2052s carry modestly higher duration than the 2053s and trade at a lower OAS, the $75.4 price embeds meaningful pull-to-par and convexity that we think compensate for the additional duration. In our view, the discount price offers better pull-to-par and somewhat better protection if spreads widen, while the 2053s provide stronger carry. The JBS 6.500% 2052s at $100.6 also remains a reasonable near-par alternative in the long end, but we continue to see the clearest value in the 2052s and 2053s.

In the belly, the JBS 6.750% 2034s remain the most interesting intermediate bond, but at 110 bps OAS they now trade well inside their 3-month average of 153 bps and their 1-year average of 123 bps, suggesting valuations have tightened materially and that upside is more limited from current levels. They are also only 15 bps wide to Tyson’s 5.700% 2034s at 95 bps OAS and 23 bps wide to Tyson’s 4.875% 2034s at 87 bps, which reinforces our view that the belly now looks closer to fair value. More broadly, the 2034s are only modestly wide to the U.S. BBB benchmark at 107 bps OAS and are tight to the EM BBB benchmark at 122 bps, while the JBS 5.950% 2035s at 119 bps OAS still offer somewhat better relative value in that part of the curve. That said, management’s comments around potential liability management involving the 2033 and 2034 bonds provide an additional technical element worth monitoring, as those bonds carry coupons of 5.750% and 6.750%, respectively, above what JBS could likely issue today in long-dated maturities.

We remain Neutral on the short end. The 2029s yield 4.7% for 2.7 years of duration and trade at 71 bps OAS, leaving them only 3 to 6 bps wide to Tyson’s 2029s, which in our view is not enough pickup to make the short end particularly compelling.

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We downgrade Minerva to Neutral following the significant spread compression observed across the curve over the past twelve months. The re-rating we anticipated has largely played out, and the bonds now reflect a credit that has completed its integration and stabilized its financial profile. At current levels, the investment case no longer offers the asymmetric risk-reward that underpinned our prior Overweight stance. The BEEFBZ 4.375% 2031 notes yield 6.3% for 4.3 years of duration, below the EM BB index yield of 6.8% at 5.8 years, while the BEEFBZ 8.875% 2033 notes yield 7.0% measured to the 2028 call date, trading inside the LatAm BB curve on an OAS basis and at the tight end of their 1-year range. With spread compression largely exhausted and carry no longer offering a meaningful premium relative to the broader EM BB universe, we think the risk-reward is balanced rather than asymmetric. The 2026 outlook reinforces this view, as the acquisition-driven deleveraging tailwind has been substantially absorbed, the resumption of dividends introduces a more balanced capital allocation framework, and margin compression from rising cattle costs is expected to keep EBITDA broadly stable in absolute terms. In this context, the credit is well managed and the fundamental trajectory remains constructive, but the bonds are fully priced for it. For investors already holding exposure, we prefer the BEEFBZ 4.375% 2031 notes as the more efficient and defensive exposure at current levels. We therefore view the current risk-reward as balanced rather than compelling.

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We maintain an Opportunistic Overweight recommendation on CSN, with a preference for the CSNBZ 4.625% 2031s and CSNBZ 5.875% 2032s, which in our view continue to offer the best combination of attractive carry, valuation, and upside potential along the curve. We use the Opportunistic Overweight label deliberately, as the thesis is driven by spread dislocation following rating actions and ongoing capital structure concerns rather than by an improving fundamental trajectory. 4Q25 results came in above expectations on both revenues and EBITDA, but they also confirmed ongoing credit pressure from negative free cash flow and rising leverage. While we think current spread levels already reflect the near-term pressure from cash burn, elevated capex, high financing costs, and still weak underlying steel profitability, persistent weak cash generation and softer credit metrics continue to reinforce the market’s cautious stance. Liquidity fully covers 2026 maturities and, assuming typical bank debt rollover, extends coverage into 2027. That said, cash declined meaningfully to R$16.0 billion, covering short term debt by 1.5x, and we no longer characterize the liquidity position as strong. We would view liquidity as becoming a more material concern if cash continues to decline without a corresponding improvement in operating cash flow or successful execution of liability management initiatives. Management reiterated that deleveraging remains a top priority, to be pursued through asset monetizations, liability management initiatives, and additional financing structures.

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We maintain our Overweight recommendation on Telecom Argentina (B2/B-/B), but with a revised preference across the curve following the January 2026 refinancing and the repricing of the front end. We continue to view the acquisition of Telefónica Móviles Argentina as strategically positive for the credit over the medium term, as it expands Telecom’s scale across mobile and broadband services, strengthens its competitive position in Argentina, and should support operating efficiencies as the integration progresses. At the same time, the 4Q25 results also show that margin normalization is likely to remain gradual rather than immediate, particularly at the acquired operations.

Operational performance in 4Q25 remained broadly resilient. Revenue growth was supported by the consolidation of TMA and higher ARPU across mobile, broadband, and Pay TV services, while leverage improved and free cash flow was healthy. Profitability softened sequentially, reflecting higher operating costs and integration-related pressures, but the underlying trajectory remains constructive. TMA’s EBITDA margin improved materially to 22.2% in 2025 from 11.0% in 2024, suggesting that the efficiency plan is beginning to gain traction even if quarterly progress is not linear.

From a credit perspective, the most important development is the improvement in the maturity profile. The US$600 million issuance of 2036 notes in January 2026, together with the repayment of acquisition-related loans and the redemption of the July 2026 notes, materially reduced near-term refinancing pressure. We view this as a meaningful credit positive, given that weak liquidity had been one of the main constraints in the Telecom story. While the transaction does not eliminate liquidity risk entirely, as short-term debt remains elevated and the company continues to operate without committed revolving credit facilities, the maturity profile is now more manageable. We also note that a significant portion of the remaining near-term obligations is denominated in local currency or dollar-linked instruments, which tend to be easier to refinance than hard-currency bonds.

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We maintain our Overweight recommendation on Pemex, supported by the continued demonstration of extraordinary sovereign backing and the resulting improvement in the company’s refinancing profile. Mexico’s 2025 debt strategy, including sovereign bond issuance, the $12 billion pre-capitalized securities (P-Caps) transaction, and the $9.9 billion bond buyback, has materially reduced Pemex’s financial debt and shifted part of the refinancing burden onto the sovereign balance sheet. These measures have strengthened liquidity visibility and improved the company’s maturity profile, reinforcing the sovereign’s commitment to supporting the company and anchoring near-term credit performance.

At the same time, 4Q25 results highlight the structural fragility of Pemex’s operating model. Revenues declined sequentially amid weaker crude realizations and a sharp contraction in export volumes, while adjusted EBITDA decreased to $1.85 billion from $3.20 billion in 3Q25. Free cash flow before working capital remained deeply negative, as operating cash generation was insufficient to cover elevated capital expenditures and interest payments. While recent liability management operations have helped reduce gross financial debt and improve leverage metrics, funds from operations remained negative, underscoring the company’s continued dependence on government support to stabilize liquidity and sustain investment.

Looking ahead, the 2026 credit story appears more dependent on technical and policy factors than on a meaningful improvement in underlying operating fundamentals. The large-scale support measures implemented during 2025 materially reduced near-term refinancing risk, but the scope for additional extraordinary interventions appears more limited in the near term. As a result, we believe the next phase of performance will likely depend more heavily on the pace of sovereign support through the federal budget, the evolution of Pemex’s funding strategy, and broader EM credit market conditions.

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We maintain our Overweight recommendation on YPF (B2/B-/CCC+), as 4Q25 confirms that the structural transformation of the asset base is translating into a more resilient credit profile, even if liquidity remains the key constraint.

We think 4Q25 reinforces the structural improvement in the operating profile. The transition toward a lower cost, more oil weighted portfolio continued to gain traction, with shale oil production up 41.9% YoY, representing 71.5% of total crude, and total lifting costs down 44.2% YoY. This mix shift, together with the sharp recovery in downstream profitability, helped lift adjusted EBITDA 53.0% YoY. The accelerated exit from mature conventional fields, combined with Vaca Muerta scale and midstream and export projects, including VMOS, with first oil expected in December 2026 at ~180 kbbl/d and ramping to ~550 kbbl/d by 3Q27, and Argentina LNG, with FID targeted for 2026, continues to de risk the asset base and improve through cycle margin resilience. This supports a more durable hard currency cash generation profile as export capacity expands and strengthens the standalone credit profile.

That said, we continue to view liquidity and refinancing execution as a constraint. Liquidity remains weak, with short term debt of $2.36 billion equivalent to 197% of cash plus short term investments, and roughly $2.1 billion of maturities scheduled for 2026. We think YPF’s continued market access helps offset this constraint, including the $500 million 2031 re tap in 4Q25, the $700 million export backed syndicated loan with $650 million undrawn as of February 2026, and the $550 million 2034 re tap in January 2026 that was partly used to prepay the $324 million CAF A/B loan. Divestment execution also remains an important part of the liquidity bridge, including proceeds collected from the Profertil stake sale and the signed sale of Manantiales Behr, which remains subject to closing.

The balance of the story remains Argentina risk. Despite improving operating fundamentals, sovereign and policy dynamics continue to act as the dominant overlay and can reprice the curve quickly. As the 2027 presidential cycle approaches, we expect political volatility to reemerge, limiting the scope for sustained decoupling in longer dated bonds and reinforcing the need for disciplined bond selection and careful duration control.

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We maintain our Overweight recommendation on Vista Energy, with a continued preference for the VISTAA 8.500% 2033 notes as the most attractive way to express a constructive view on the credit.

4Q25 results reinforce Vista’s strong operating momentum, with continued production growth, solid EBITDA generation, and leverage remaining around 1.6x on a pro forma basis. We think the company maintains a robust business profile anchored in Vaca Muerta, supported by an oil-weighted portfolio, growing export exposure, and structurally improving unit costs following the ramp-up of midstream infrastructure. While the reduction of Al Mehwar’s stake to 2.77% removes a previously cited liquidity mitigant in a stress scenario, we believe Vista’s standalone fundamentals, a consistent track record of capital markets access, and improved short-term debt coverage support a resilient credit profile under our base case assumptions.

The acquisition of Equinor’s stakes in Bandurria Sur and Bajo del Toro further reinforces our constructive stance, as discussed in our recent note, “Vista Acquires Equinor’s Vaca Muerta Assets, Reinforcing Core Acreage Position.” The transaction increases pro forma production to roughly 150 kboe/d, enhances oil weighting and export exposure, and adds low-cost barrels at attractive implied valuation metrics. We view the leverage impact as broadly neutral despite higher absolute debt, with pro forma gross leverage remaining around 1.9x and net leverage increasing only modestly to approximately 1.7x, while scale and hard currency EBITDA increase meaningfully. In our view, the transaction improves medium-term cash flow durability and enhances visibility on the development plan, further strengthening the fundamental case for holding duration in the belly of the curve.

From a curve positioning standpoint, the VISTAA 8.500% 2033 notes trade at an OAS of 327 bps, with a 3.7-year duration and a yield to worst of 7.0%, while the VISTAA 7.625% 2035 notes trade at 312 bps OAS, with a 5.5-year duration and a yield to worst of 7.2%. In our view, the modest yield pickup on the 2035s does not adequately compensate for nearly two additional years of duration and higher exposure to Argentina risk. The 2033s offer a more balanced combination of carry and lower volatility, in what we view as the most efficient part of the curve for investors seeking exposure to Argentina’s shale growth story without assuming incremental duration risk.

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We maintain our Neutral recommendation on MercadoLibre. We continue to view MELI as one of the highest-quality BBB credits in LatAm, supported by structural leadership in e-commerce and fintech, strong ecosystem dynamics, and solid internal cash generation. However, at current spread levels, we see limited scope for further material spread compression. While the credit profile remains sound, near-term margin pressure and structurally higher funding needs tied to credit growth limit the case for a re-rating.

The 4Q25 results reinforced robust growth across Commerce and Fintech, but also confirmed that management remains focused on ecosystem expansion rather than margin optimization. Strategic initiatives in Brazil logistics, first-party operations, cross-border trade, and credit card scaling continue to weigh on profitability in the near term. While we view this as supportive of long-term franchise value, it sustains elevated investment intensity and a structurally higher balance sheet footprint, reflected in higher reported debt and a tighter liquidity coverage profile.

From a relative value perspective, MELI (BBB-) 3.125% 2031 notes trade at approximately 102 bps OAS with 4.4 years of duration and a 4.6% YTW. The bonds are currently priced at $93.4, below par, which provides visible pull-to-par support over time if spreads remain stable. That said, the discount price largely reflects the lower coupon structure rather than an outright spread concession, and convexity benefits are moderate given the intermediate duration profile. At current levels, we think meaningful price upside would primarily require further spread compression.

Versus benchmarks, the 2031s trade through the EM BBB index at 117 bps, implying roughly 15 bps of tightness despite MELI’s meaningful exposure to higher-risk Latin American markets. The bonds also trade through their recent historical averages, with the 3-month average at 134 bps and the one-year average at 126 bps, while remaining above the one-year low of 84 bps. Spread performance versus EM Corp BBB shows that the 2031s have typically traded modestly tight to the index, reinforcing their premium positioning within the asset class.

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We maintain our Neutral recommendation on Gerdau. We continue to view the company as a solid BBB credit with a conservative balance sheet, strong liquidity, and a structurally advantaged North American footprint. However, at current spread levels, we see limited scope for material re-rating, particularly as Brazil remains challenged by persistent import penetration and only incremental progress on trade-defense measures.

From a business-risk perspective, 4Q25 reinforced the structural divergence within the portfolio. North America, which accounted for 73% of consolidated adjusted EBITDA in the quarter, continues to benefit from Section 232 protection, resilient non-residential construction demand, data center and renewable energy investment, and a supportive backlog. By contrast, margins in Brazil remain pressured, with import penetration at 21% and EBITDA margins in the high single digits. While Miguel Burnier should structurally enhance Brazilian cost competitiveness from 1H26 onward, we think the timing and magnitude of margin normalization remain contingent on effective trade enforcement and domestic pricing dynamics.

Financially, leverage at 0.91x net and 1.55x gross remains conservative, with FFO to debt at 47.3% and liquidity covering maturities through 2035. The reduction in 2026 capex to R$4.7 billion should support a clearer free cash flow inflection, but shareholder distributions and buybacks limit the scope for materially lower leverage in the near term. As a result, we view the credit as stable and resilient, but without a clear catalyst for meaningful spread tightening from current levels.

At current levels, Gerdau’s curve appears broadly aligned with LatAm BBB comparables, offering limited incremental compensation for extending duration beyond the belly.

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We continue to view Suzano as a high-quality BBB- credit in LatAm, supported by its global cost leadership in hardwood pulp, diversified revenue base, and disciplined financial policy. Spreads have tightened modestly versus 3Q25 and, in our view, now appear broadly fair across most of the curve. Accordingly, we maintain a Neutral recommendation at the issuer level while identifying selective relative value opportunities within the curve, particularly in the 2031s and 2032s.

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We maintain our Neutral recommendation on Cemex. While we continue to view the company as an attractive and resilient LatAm credit, we see limited room for further spread compression at current levels, with bonds trading close to LTM tights. This view is underpinned by a robust credit profile supported by strong liquidity, manageable refinancing needs, and sufficient flexibility to navigate near-term macro and operating volatility. Management’s continued focus on profitability, margin expansion, and balance sheet discipline remains constructive, and we do not expect the credit to underperform. However, valuation plays a more prominent role in our stance, as recent spread compression limits near-term upside.

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Vista Energy announced an agreement to acquire Equinor’s onshore unconventional assets in Argentina’s Vaca Muerta basin, marking another step in the company’s strategy to consolidate scale in the core of the shale play. The transaction involves the acquisition of non-operating working interests in two producing blocks, Bandurria Sur and Bajo del Toro, both operated by YPF. Vista will acquire a 25.1% interest in Bandurria Sur and a 35.0% interest in Bajo del Toro, while YPF will remain operator of both assets. Following completion, YPF will hold a 44.9% interest in Bandurria Sur and a 65.0% interest in Bajo del Toro, with Shell Argentina retaining a 30.0% stake in Bandurria Sur. The acquisition is subject to customary conditions precedent, including regulatory approvals and the waiver or non-exercise of pre-emptive rights held by partners. YPF has already signed a waiver of its pre-emptive rights, subject to Shell Argentina’s decision regarding its own rights. Closing is expected in 2Q26.

The transaction value is framed differently by the parties. Equinor disclosed a headline value of approximately $1.1 billion, which includes upfront consideration, Vista equity, and contingent payments linked to production and oil prices over a five-year period. Vista, in turn, reported a transaction value of $712 million, which excludes contingent payments and the value of interests sold to YPF as part of the broader restructuring, thereby explaining most of the difference versus Equinor’s headline valuation.

• Upfront consideration consists of $387 million in cash.

• 6.2 million Vista ADSs, valued at US$52.2 per share based on a 20-day volume-weighted average price.

• A contingent consideration mechanism payable in five annual installments, calculated based on the acquired assets’ annual working interest production and the prior year’s average Brent price. No payment is due if Brent is at or below $65 per barrel, with payments capped at $15 per barrel at or above $80 per barrel.

To fund the transaction, Vista expects to use a combination of cash on hand and new bank financing. The company indicated that it has secured commitments for a new four-year loan facility of up to $600 million from a consortium of international banks, with the final amount to be determined at closing.

The assets are located in the core of Vaca Muerta and are adjacent to Vista’s existing operations, which management views as supportive of operational synergies and improved development efficiency. Upon closing, Vista expects to add approximately 22,000 boe/d of production, increasing total output by around 17% to roughly 150,000 boe/d. The transaction also adds an estimated 54 million boe of proved reserves and approximately 27,730 net acres in what Vista describes as the epicenter of the basin, together with a sizable inventory of ready-to-drill wells. Bandurria Sur is a mature unconventional concession awarded in 2015 with a 35-year term, while Bajo del Toro and Bajo del Toro Norte were awarded in 2021, also with 35-year terms.

According to company disclosures, the acquired assets generated $292 million of revenues over 9M25, of which $283 million were oil-related, implying a highly oil-weighted cash flow profile. On an annualized basis, revenues reach approximately $391 million, supporting adjusted EBITDA of $269 million. Cost metrics are competitive by Vaca Muerta standards, with lifting costs of $4.7/boe and selling expenses of $4.4/boe, underscoring the low-cost nature of the production base. Notably, approximately 64% of oil production is exported, reinforcing hard-currency cash generation and aligning the asset profile with Argentina’s broader export-driven shale strategy.

Recommendation and credit view

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Following our recent note on CSN’s announced divestment strategy, S&P Global Ratings downgraded the company to B+ with a Negative outlook, citing uncertainty around the execution, timing, and cash flow impact of the planned asset sales. While we agree that execution risk remains central to the credit story, we think the downgrade also highlights a broader tension between rating agency methodology and the directional improvement implied by a deleveraging plan of this magnitude.

S&P’s rationale is anchored in the conditional nature of CSN’s leverage reduction. The agency assumes that, absent completed divestments, leverage remains above 5.0x through 2026 and therefore treats the announced R$16–18bn asset sale program as largely neutral until proceeds are realized. From a methodological standpoint, this approach may be internally consistent, but it is inherently backward looking at a moment of strategic inflection. From a bondholder perspective, however, it arguably underweights the more relevant question, which is whether the plan improves the probability of deleveraging within a timeframe that matters for creditors, even if the path remains execution dependent.

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YPF has priced a US$550 million tap of its outstanding 8.250% January 2034 senior unsecured notes at a yield of 8.1%, tightening from initial price talk in the mid 8% area. The tap priced at 101.789 following IPT in the mid 8% range, with guidance set at 8.1% and settlement scheduled for January 27, 2026. The transaction follows the same documentation and amortization profile as the original issue.

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We maintain our initiation framework that asymmetric risk favors operating-company bonds over the holding company, even as 4Q25 preliminary results improve the group’s credit optics. The deleveraging to 3.1x and the completion of the Ciclus Rio sale are credit positive and reduce near-term downside risk, but they do not change the structural reality that SIMHBZ 2031 remains structurally subordinated and reliant on upstreaming after subsidiaries meet their own debt service and liquidity needs. That dependence on upstreaming and structurally path-dependent recoveries was a core reason we preferred Vamos over Simpar at initiation.

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On January 15, 2026, CSN hosted its Strategic Plan update call, during which it announced that its Board of Directors authorized a structured divestment plan aimed at reducing the group’s gross debt by R$15 billion to R$18 billion. The company intends to sell a controlling stake in its cement subsidiary, CSN Cimentos, and a relevant minority stake in its infrastructure division, CSN Infraestrutura. Management indicated that the sales process begins immediately, stating “we’re beginning this project today,” with the signing of definitive agreements expected between the third and fourth quarters of 2026.

Chairman Benjamin Steinbruch framed the decision as a response to Brazil’s high interest rate environment, describing rates as “stratospheric” and noting that the targeted deleveraging amount represents roughly 50% of the company’s current debt. Management emphasized that waiting for a more benign rate cycle would continue to weigh on cash flow and pressure the capital structure, reinforcing the need to pursue balance sheet action despite challenging market conditions for asset valuations.

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Telecom Argentina has successfully priced a US$600 million senior unsecured notes issuance due January 2036. The notes priced at 99.201 with an 8.500% coupon, yielding 8.625%. Pricing came at the tight end of guidance of 8.75% plus or minus 12.5 bps and significantly through initial price talk in the low 9% area, underscoring strong investor demand. Proceeds will be used for the repayment or refinancing of existing indebtedness, with any remaining amount allocated to general corporate purposes. The notes are governed by New York law and listed in Luxembourg as well as locally on BYMA and A3 Mercados. The final size of US$600 million represents an upsizing from the initial US$500 million target, within the expandable range of up to US$1 billion. This outcome confirms solid investor appetite, allowing the issuer to increase deal size while simultaneously achieving meaningful price tightening. The issuance is rated B2 by Moody’s and is expected to be rated B- by S&P and B by Fitch.

New Issue Terms:

• Issuer: Telecom Argentina S.A.

• Size: US$600 million

• Maturity: January 20, 2036 (10 Years)

• Amortization: Two equal annual installments of 50% each on Jan 20, 2035, and Maturity (Jan 20, 2036). WAL: 9.5 Years.

• Yield: 8.625% (Tightened from IPT Low 9% Area)

• Call Structure: Make-whole call prior to Jan 2031; HY call schedule thereafter:

  • From Jan 20, 2031: Par + 50% of coupon

  • From Jan 20, 2032: Par + 25% of coupon

  • From Jan 20, 2033: Par + 12.5% of coupon

  • From Jan 20, 2034 and thereafter: Par

• Use of Proceeds: Repay/Refinance existing indebtedness; remainder for general corporate purposes.

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We maintain our view that Braskem’s large domestic footprint, political relevance, and partial government ownership make a default event less likely in the near term. That said, we think the timing of liquidity measures and clarity on policy relief will be decisive for any sustained re-pricing. At current spread levels, we view most of the downside as already reflected in prices, with Braskem bonds trading in the $36–44 range, improving from the $31–39 range in mid-October 2025. In this context, we favor exposure to the lower-priced bonds within the curve, where investors have better protection against potential haircuts.

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